The final report on Preparing Regular Educators for Mainstreaming mildly handicapped children (Project PREM) focuses on the first year's activities and outlines proposed objectives for the project's second and third years. Covered in an introductory section are Project PREM's main objective of developing and implementing a competency-based program for both preservice and inservice teachers, the background of educational programing for the handicapped, the history of special education in Texas, and Project PREM's purposes and goals. Project activities are noted to be divided into four major cluster areas (sample activities are in parentheses): planning (selection of educators to serve on the planning and development team); identification of competencies and management systems (a survey of state and national planning and training procedures in relation to the mainstreaming concept); major programing activities and evaluation (the pilot testing of the modules and delivery systems with 107 preservice and inservice teachers); and administration and organization. Listed among second year objectives in each of the major cluster areas is the identification of instruments and procedures for evaluating the field experience component. Plans (also listed for each cluster area) for year 3 of the project are noted to involve the integration of the competency-guided modules and field components into existing preparation programs. In a final section on evaluation results, modifications are suggested which include the development of short, objective pre- and post-assessment instruments. Appended is an outline of the goals and objectives of 10 instructional modules covering such topics as handicapping conditions and individualized instruction. (SB)